Regulations of Shenzhen Special Economic Zone on Unemployment Insurance

(Adopted at the eleventh meeting of the Second Session of Standing Committee of Shenzhen Municipal People' s Congress on October 29,1996)

ChapterΆρ General Provisions

Article 1 These regulations are formulated in accordance with basic principals of laws and regulations, as well as in the light of the actural situations of Shenzhen Special Economic Zone (hereinafter referred to as "Special Zone" ) to safeguard the labor right of unemployed people and to promote re-employment.

Article 2 The employing work unit mentioned in these regulations refers to:

(1) Enterprises registered in the Special Zone;

(2) Government offices, institutions, public organizations which have formed labor contractual relations with the staff.

Article 3 The unemployed staff mentioned in these regulations means the unemployed staff who has handled the unemployment registration procedures and owns permanent residence of Special Zone.

Article 4 The unemployment insurance should combine with the unemployment service such as the job introduction, career training and producing for saving oneself, ect.

Article 5 The unemployment insurance fund shall be set up and shall be pooled in the whole city.

The unemployment insurance fund shall be used for paying general fees that stipulated in these regulations.

Article 6 The labor administrative department (hereinafter referred to as "Labor Department" ) of Shenzhen Municipal People' s Government (hereinafter referred to as "Municipal Government" ) is the competent authority of the unemployment insurance.

The unemployment insurance institutions set up by Labor Department shall be in charge of the unemployment insurance business.

Article 7 The unemployment insurance is under supervision of Municipal Administrative and Supervisory Committee of Social Insurance.

Chapter Άς Unemployment Insurance Fund

Article 8 The unemployment insurance fund comes from the following sources:

(1) The unemployment premium and interest incomes;

(2) The belated payment of the unemployment premium;

(3) Management incomes of the unemployment insurance fund;

(4) Financial subsidy.

Article 9 The amount of the unemployment insurance premium that the employing unit pays per month shall be 1% of the amount of monthly average wage of the last year ,announced by Municipality, times staff member of the unit and multiply by certain proportion.

The proportion mentioned in the preceding clause shall be formed by the factors of Special Zone such as employment constitutive state, gross domestic product, resident' s price index of living expenses, minimum wage standard and income and expenses of unemployment insurance fund ect, and shall be announced to the public every year.

Article 10 The unemployment insurance premium paid by enterprises shall be listed in cost. The unemployment insurance premium paid by government offices, institutions and public organizations shall be listed in administrative institution funds or in free capital.

Article 11 The employing unit shall participate in the unemployment insurance and pay the unemployment insurance premium in full on time.

Article 12 The unemployment insurance premium shall be withheld by the de posit bank.

The unemployment insurance premium shall be deposited in the special bank account of the unemployment insurance fund and shall be regarded as a special fund for special purpose. Any unit or individual shall not misappropriate.

Article 13 The unemployment insurance fund shall be used to the employed in the following ways:

(1) Unemployment benefits;

(2) Subsidies for living difficulty when receiving unemployment benefits;

(3) Medical insurance premium that should be paid when receiving unemployment benefits;

(4) Funds for promoting re-employment (fees for transforming vacation training, fees for labor exchange and fees for self-help production projects);

(5) Management fees for unemployment insurance;

(6) Other fees that should be paid approved by the Municipal Government.

Except for unemployment benefits, the payment ranges and standards of the funds specified in the preceding paragraph shall be determined by the Municipal Government.

Article 14 With the permission of the Municipal Social Insurance Administration and Supervision Committee, the unemployment insurance fund may be applied to adjusted or value-added investment items such as purchasing state bond, but the total investment shall not exceed 20% the mount of the surplus fund of the next year.

Article 15 The annual budget and final-accounting of revenue and expenditure of unemployment insurance fund shall be drafted by Unemployment Insurance Institution, deliberated by Social Insurance Administration and Supervision Committee, checked by Finance Department and reported to Municipal Government for examination and approval.

Collection, management and use of the unemployment insurance fund shall be supervised and audited by Finance Department and Auditing Department according to law.

Chapter Άσ Unemployment Insurance Treatment

Article 16 If employee loses his job in the following circumstances, he shall, taking relevant materials with him, go through the formalities of the unemployment registration at unemployment institutions within one month:

(1) The employing work unit is declared bankrupt, dissolved or revoked;

(2) The employing work unit is consolidated;

(3) The employing work unit reduces the staff because of serious difficulty in production and management;

(4) Labor contract is terminated or canceled;

(5) Other circumstances provided by laws and regulations.

If the unemployed person fails to handle the formalities of unemployment registration when the time is overdue, the unemployment benefits he enjoys shall be reduced month-by-month from the date of expiration of registration limit.

Article 17 Those who satisfies the following requirements may get unemployment insurance treatment:

(1) Having labor capability within legal job age;

(2) Continuing to work in Special Zone for more than one year;

(3) Having registered in accordance with rules after becoming unemployed and having application desires.

Article 18 The account standard of the unemployed persons getting unemployment benefits is determined as one month' s unemployment benefit compares to six months continual work time of the unemployment persons.

Article 19 The amount of unemployment benefit delivered per month is 80% of the minimum wage per month announced by the Municipal Government last year.

Article 20 The unemployed persons may, taking with them unemployment certificate and identification card, receive the unemployment benefits at unemployment institutions every month, 30 days from the date of going though the formalities of the unemployment insurance application.

Article 21 The unemployment person may apply to the unemployment institutions for paying the rest of the unemployment benefits at one time if he obtains employment by himself or undertaking individual operation.

Article 22 The unemployment person with any of the following situations when receiving the unemployment benefits shall be stopped from receiving the unemployment benefits by the unemployment institutions :

(1) Re-employment;

(2) Emigrating to other countries;

(3) Having handled the formalities of retirement;

(4) Refusing the employment opportunities for 2 times provided by the employment service center without proper reasons.

(5) Having been labor educated and rehabilitated or been decreed a punishment to put into prison;

(6) Other circumstances provided by laws and regulations.

Article 23 The unemployed person with any of the following situations may apply for subsidies for living difficulty to unemployment insurance institutions when receiving the unemployment benefits:

(1) The monthly income per person of the family is lower than the lowest guarantee standard of Shenzhen Municipality;

(2) Can not maintain basic life due to special difficulties.

The standard of subsidies for living difficulty shall not exceed 40%of the total mount of the unemployment benefits received by the same person.

Article 24 When the term of receiving the unemployment benefits expires, an unemployed person may, if he or she is 2 years closer to reach the legal retirement age, apply for further receiving the unemployment benefits until the legal retirement age.

Article 25 When the term of receiving the unemployment benefits expires, an unemployed person may, if he or she is still difficult to live, apply for social relief to Civil Affairs Department according to relevant rules;

Article 26 If a unemployment person changes his residence registration out of Shenzhen when receiving the unemployment benefits, the unemployment insurance institutions shall transfer the remaining sum of the unemployment benefits he should enjoy into local unemployment insurance institutions or give it to the person.

Article 27 Labor department shall perform the following duties and responsibilities during the unemployment insurance work:

(1) Organizing the implementation of the unemployment insurance laws and regulations;

(2) Guiding the unemployment insurance institutions to carry out unemployment insurance and re-employment promotion;

(3) Supervising and checking the collection and use of the unemployment insurance funds in accordance with laws.

Article 28 Main duties and responsibilities of the unemployment insurance institutions are:

(1) To collect the unemployment insurance premium;

(2) To pay the unemployment benefits;

(3) To manage the unemployment insurance fund;

(4) To go through the formalities of unemployment registration and to introduce re-employment opportunities;

(5) To organize re-employment training of the employment persons; and to support and guide self-help production projects and self-employment seeking.

Article 29 The unemployment insurance institutions shall report the unemployment insurance work to Municipal Supervision and Administration Committee of Social Insurance every year and shall announce the collection and use conditions of the unemployment insurance fund to the public.

Chapter Άτ Legal Responsibility

Article 30 If any unit or individual embezzles the unemployment insurance fund in violation of these regulations, the person direct liable and the leader in charge shall be given disciplinary sanction. If their wrongful act constitutes a crime, they shall be prosecuted for criminal liability.

Article 31 If the working unit, in violation of these regulations, fails to take part in the unemployment insurance or fails to pay the unemployment insurance premiums on time, the unemployment insurance institutions may issue a notice for demand payment. The working unit shall pay the unemployment insurance premiums and an overdue fine, which shall pay the mount of 5΅λ of the overdue unemployment insurance premiums in arrears from the first day the payment is overdue, to the unemployment insurance institutions within 30 days from receiving the notice. If the working unit refuses to pay, he shall be ordered to make corrections and penalized a fine two times the mount of the overdue unemployment insurance premiums in arrears that should be paid by the Labor Department.

Article 32 Any person, in violation of these regulations, obtains the unemployment benefits and other premiums by fraud shall be recovered his unlawful gains by the unemployment insurance institutions, and shall be penalized a fine 20% the mount of the unlawful gains.

Article 33 The unemployment insurance institutions have right to examine and verify the materials such as personnel register and payoff table of the employing work unit and propose a motion to auditing department for cooperation.

Article 34 If the personnel of the unemployment insurance institutions and labor department abuses his authority, neglects his duty and commits fraudulent acts or personal gains, he shall be subject to disciplinary sanction by his units or relevant department; if his wrongful act results in losses for the employing work units and the unemployed persons, he shall be liable for compensation; if his wrongful act constitutes a crime, he shall be prosecuted for criminal liability.

Article 35 In case any party objects to the punishment decision made by the unemployment insurance institutions and labor department, he may apply to the Municipal Government' s administrative reconsideration authorities and the labor department respectively for reconsideration within 15 days upon the date receiving the decision. If the party still dissatisfies with the reconsideration decision, he may file a suit to the People' s Count within 15 days upon the date receiving the decision. In case the party concerned neither applies for an administrative review, nor files a lawsuit, nor fulfills the punishment decision, the Municipal Government' s administrative reconsideration authorities or labor department may apply to the People' s Count for compulsory execution.

In case the employee has disputes with the employing work unit, it shall be dealt with according to national measures for handling the labor disputes.

Article 36 These regulations shall not be applied to the enterprises which belonged to subdistrict office of town and villages' committee.

Article 37 The detailed implementing measures are to be formulated by the Municipal Government in accordance with these regulations.

Article 38 These regulations shall take affect as of March 1st, 1997.

(Translated by Xu Lingling)

Laws of the Guangdong Province

Regulations of Shenzhen Special Economic Zone on Unemployment Insurance